COLOMBO, May 7, 2025 - The World Bank Group today announced a major initiative to support job creation and unlock private sector growth in Sri Lanka, backed by more than $1 billion in financing over three years. The package targets sectors with high potential for employment and investment-energy, agriculture, tourism, and regional development.
The initiative aims to expand economic opportunity, strengthen local industry, and attract private capital to support long-term growth. It was announced after a meeting in Sri Lanka between President Anura Kumara Dissanayake and World Bank Group President Ajay Banga-marking the first visit by a Bank President in two decades and signaling a renewed commitment to the country's economic recovery and future.
"This support from the World Bank Group is an investment in the people of Sri Lanka," said President of Sri Lanka Anura Kumara Dissanayake. "It will help create jobs, support small businesses, and open up new opportunities across the country. We are committed to ensuring this partnership delivers real change for our communities."
World Bank Group President Ajay Banga highlighted the importance of acting now to build on Sri Lanka's progress.
"This is a moment of opportunity for Sri Lanka," said World Bank Group President Ajay Banga. "With progress underway to stabilize the economy and restart growth, core elements for job creation are in place. Now is the time to accelerate reforms and create the conditions for private enterprise to thrive-particularly in sectors that can create jobs at scale."
The World Bank estimates that nearly one million young people will enter Sri Lanka's workforce over the next decade, yet only about 300,000 jobs are projected to be created over the same period.
The new financing directly targets this gap-mobilizing public and private investment to create more and better jobs. The immediate sectors targeted in the $1 billion package include:
- Energy ($185 million): Supporting new solar and wind generation equivalent to 1 gigawatt of capacity, aimed at lowering electricity costs for families and businesses. The project is expected to mobilize over $800 million in private investment and includes $40 million in guarantees.
- Agriculture ($100 million): Helping farmers and agribusinesses adopt new technologies, access markets, and attract private capital. The program will benefit more than 380,000 people-including 8,000 agri-food producers-and is expected to leverage $17 million in private financing.
- Tourism ($200 million): Expanding the sector by protecting natural and cultural assets, creating jobs, and ensuring benefits flow to local communities.
- Regional Development ($200 million): Investing in infrastructure, local industries, and job creation in historically underserved areas-including the Northern and Eastern Provinces.
This integrated approach-bringing together the World Bank's financing, knowledge, and private sector tools-is a concrete example of the institution's unique ability to support economic growth and job creation at every stage. It reflects the Bank's focus on supporting job-generating sectors and enabling private investment.
The World Bank Group has been a trusted partner to Sri Lanka for more than 70 years, with current investments exceeding $2.2 billion. Today's announcement deepens that partnership-focused on enabling opportunity, expanding private sector growth, and supporting the country's path to a more resilient and inclusive economy.
